Canadian debt -

[Admiral Beez]

Average consumer debt load, excluding mortgage on residence, hits new high above $27K. Canadian consumer debt loads increased by 6% in 2012, fastest pace since 2009
http://www.cbc.ca/news/canada/story/2013/02/04/business-transunion-credit-debt.html

Where are you on this scale? Does not include mortgage.

 

[Admiral Beez]

That's me above, $10 - $15K. Can you believe it's vet bills?! Not all, there's some essential home reno and and car repair in there too. Not too shabby, but I'm working towards zero. In the meantime, debt is all in low rate LoC. Of course if the car(s) need replacing that'll knock me into a new level.

I graduated Uni in 1996, and if you can believe only paid off my OSAP in 2008. The interest was tax deductible so there's no real incentive to hurry, and instead one can focus on other debt.

 

[UserNameToronto]

I graduated Uni in 1996, and if you can believe only paid off my OSAP in 2008. The interest was tax deductible so there's no real incentive to hurry, and instead one can focus on other debt.

We did the same thing with student loans, keeping them around for a few years because the after-tax cost was so low.

The Bank of Canada's inflation target is 1.4%. That means our mortgage carries a real effective rate of 0.7% (and, if we had drawn our line of credit, it would carry at a real rate of 1.7%). When money's this cheap, carrying debt isn't the worst thing in the world.

 

[junctionist]

The poll shows that the people of UT are mostly good guys who owe nothing. To the credit card industry, they are bloody parasites.

 

[Admiral Beez]

I do wonder if we're all being honest here. Folks, you don't owe any tuition, no credit card or line of credit balances? No car payments? No "pay in 18 months" furniture or electronics?

 

[UserNameToronto]

There's a selection bias for sure - eg, people who have borrowed massively may not want to answer honestly, or at all. You're also on a real estate/urban issue board, which implies that the readership would be more educated and more wealthy.

 

[Admiral Beez]

Many of the wealthiest folks I know are massively in debt. If you're a banker, doctor or lawyer you may want that $100K Mercedes, but you may not have that kind of cash free and clear available.

I never really considered UT a real estate forum, with the exception of the dedicated real estate pages here.

 

[spider]

I do wonder if we're all being honest here. Folks, you don't owe any tuition, no credit card or line of credit balances? No car payments? No "pay in 18 months" furniture or electronics?

I am retired and do not live extravagantly in fact my net worth keeps creeping up as I am not spending the stuff fast enough to stay ahead of income from various sources. This is probably not unusual for people in my age group who were reasonably prudent during their earning years.

 

[dlam]

I do wonder if we're all being honest here. Folks, you don't owe any tuition, no credit card or line of credit balances? No car payments? No "pay in 18 months" furniture or electronics?

I paid off my OSAP one year after full time work. I know this is early as I was fortunate to be in a co-op program, had some scholarships, and some RESPs. Now I strive to continue living debt-free aside from mortgage. Currently I'm on Baby Step #3 in Dave Ramsey's Money Makeover Plan in saving 3-6 months of income for emergency fund. I can't wait until the day I am totally debt free!

 

[mikeshane]

Average consumer debt load, excluding mortgage on residence, hits new high above $27K. Canadian consumer debt loads increased by 6% in 2012, fastest pace since 2009
http://www.cbc.ca/news/canada/story/2013/02/04/business-transunion-credit-debt.html

Where are you on this scale? Does not include mortgage.

The avg canadian household debt has risen to alarming rate of 164%.

Check this wonderful, explanatory infographic -
http://www.canadianmortgagesinc.ca/2013/01/the-economy-debt-and-you.html

 

[Burton Realty]

Im 30 and owe ZERO. Of course Im renting and do not have a mortgage. But guys it can be done. My advice: Reduce debt as much as possible. I meet alot of people who want a house but cannot buy a house because of silly debt like credit cards and car payments. If you cant pay cash for that cool item, do not buy it! From experience I can tell you that paying with cash is the best way to go. No stress baby.